A change in culture

The amount the government receives in tax is down 11% compared to this time last year. Yet public spending this year has increased by nearly 7%. Unreconstructed Keynesians would argue deficit spending is necessary to mitigate the worst effects of the recession, but I doubt even JM Keynes himself would argue for sustained public investment when the budget deficit is forecast to hit 10%. And an official report released today has shown that national debt could soar to £1.5 trillion. To those who don't believe the spin about our national debt being low, it passed that figure long ago, because of the numerous debts the government keeps off the balance sheets, such as PFI, pension liabilities and bank nationalisations.

I would cut government spending first and foremost. Cut the number of useless departments. For example, creating a Justice Ministry was a waste of time and money, and should become part of the Home Office. The Department of Children, Schools and Families should be split. Children and Familes should be put into the Home Office, because they are there to protect us. The Schools brief should be put into an education post, combined with the Department for Universities and Skills. The Department of Business, Enterprise and Regulatory Reform should be merged with the Chancellorship. International Development should be merged with Foreign Affairs. The newly created Energy and Climate Change brief is pointless, and should be put back into Hilary's environment brief. The Cabinet positions for Scotland, Wales and Northern Ireland should be abolished altogether. That alone would save billions from pointless Cabinet positions.

Secondly, because spending should have risen in line with inflation, we are spending £200 billion more than we should have been. Cut £100 billion and direct it towards tax reductions on income. Slash corporation tax. Slash National Insurance contributions. Then, use the rest to put into paying debts and if necessary, cut more to reduce the budget deficit. If the British government makes it clear to the markets that it is dedicated to clearing up the fiscal mess caused by reckless spending, they may be more willing to invest in this country, and when the recovery comes, we will be in a much stronger position to accomodate new enterprise and investment.

Finally, put Gordon Brown where he belongs. Away from all of us